Next Day Prep: Mega-Cap Tech Soars, Broader Market Hesitant
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. The Nasdaq Composite closed at a new record high, but the S&P and Dow were more subdued, reflecting a narrow market where mega-cap names led the charge in Information Technology and Consumer Discretionary sectors.
Overnight Headlines
- The PHLX Semi Index surged, led by Broadcom and Oracle positioning ahead of earnings.
- Apple faced pressure ahead of its September event, while Amazon buoyed the Consumer Discretionary sector despite Tesla’s decline.
- Communication Services faced a setback after EchoStar’s spectrum sale impact on telecom stocks like T-Mobile and Verizon.
Economic Announcements
The market shows cautious optimism as dip-buyers step in, but awaits PPI and CPI inflation data later this week for further direction.
Earnings Highlights
- Robinhood and AppLovin soared on S&P 500 inclusion news.
- Planet Labs surged nearly 48% on strong quarterly performance in defense and intelligence markets.
Top Movers
CYBER: Consider a continuation play at $467 with targets at $470 and $472. Watch NOW and MNDY for similar strength setups.
Look out for semiconductor stocks like ASML and TSM as they form bullish patterns for potential breakouts.
Quick Trade Ideas
- ASML: Watch for a breakout above $799 targeting $802 and $805.
- TSM: Monitor for a move through $247.80 aiming for $248.50.
Key Takeaway
While the market hits new highs, exercise caution and focus on specific tactical setups with relative strength. Be prepared for potential market shifts with upcoming inflation data.